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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/19/2019 - SECOND READING OF ORDINANCE NO. 039, 2019, AUTHORIAgenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY March 19, 2019 City Council STAFF David Myers, Land Conservation Manager John Stokes, Natural Resources Director Dan Gulley, Real Estate Specialist II Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 039, 2019, Authorizing the Sale of Seven Water Taps and One Sewer Tap Owned by the City's Natural Areas Department. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on March 5, 2019, authorizes the sale of seven water taps and one sewer tap. The taps were acquired with various parcels purchased by the City’s Natural Areas Department over the last decade or so. The Department has no use for the taps and recommends selling them and using the proceeds for land conservation. Additionally, the taps have monthly fees costing the Department approximately $1,425 per year. The Department checked with the Affordable Housing Land Bank to ascertain its interest prior to placing the taps on the market. The Affordable Housing Land Bank does not have a use for the taps at this time. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, March 5, 2019 (w/o attachments) (PDF) 2. Ordinance No. 039, 2019 (PDF) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY March 5, 2019 City Council STAFF David Myers, Land Conservation Manager John Stokes, Natural Resources Director Dan Gulley, Real Estate Specialist II Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 039, 2019, Authorizing the Sale of Seven Water Taps and One Sewer Tap Owned by the City's Natural Areas Department. EXECUTIVE SUMMARY The purpose of this item is to seek Council approval to sell seven water taps and one sewer tap. The taps were acquired with various parcels purchased by the City’s Natural Areas Department over the last decade or so. The Department has no use for the taps and recommends selling them and using the proceeds for land conservation. Additionally, the taps have monthly fees costing the Department approximately $1,425 per year. The Department checked with the Affordable Housing Land Bank to ascertain its interest prior to placing the taps on the market. The Affordable Housing Land Bank does not have a use for the taps at this time. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The seven Fort Collins/Loveland Water District ¾-inch water taps are valued at approximately $32,000 each. The one South Fort Collins Sanitation District sewer tap is valued at approximately $6,200. The Department proposes to sell the taps to the highest bidders, which must be developers or land owners with building lots ready for the installation of the taps. Physical Locations of the Taps 1. 8161 CRD 19 - Coyote Ridge - #3129200-01 2. 2500 E. CRD 30 - Fossil Creek - #25131480-02 3. 6132 S. Shields - Hazaleus - #3182002-01 4. 4112 E. CRD 34 E. - Eagle View - #1213051-01 5. Sonoran View Estates Sub. - Red Fox Meadows - Stand by Tap - #1128031-01 6. Sonoran View Estates Sub. - Red Fox Meadows - Stand by Tap - #1128041-01 7. 6317 Kyle Avenue - Prairie Dog Meadows - Humane Society - #04332900-02 CITY FINANCIAL IMPACTS   Seven water taps are valued at $32,000 each.  One sewer tap is valued at $6,200.  The Department will work with Purchasing to sell the taps to the highest bidder. The Department will reserve the right to reject any and all offers. ATTACHMENT 1 Agenda Item 11 Item # 11 Page 2  Five of the water taps must be abandoned at the water main, at total approximate cost to Natural Areas of $25,000. The two taps at Red Fox Meadows were never installed. BOARD / COMMISSION RECOMMENDATION At its February 13, 2019, meeting, the Land Conservation & Stewardship Board voted unanimously to recommend City Council adopt the Ordinance. (Attachment 1) ATTACHMENTS 1. Land Conservation and Stewardship Board minutes, February 13, 2019 (PDF) -1- ORDINANCE NO. 039, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE SALE OF SEVEN WATER TAPS AND ONE SEWER TAP OWNED BY THE CITY’S NATURAL AREAS DEPARTMENT WHEREAS, the City is the owner of seven parcels of property as more particularly identified on Exhibit “A”, attached and incorporated herein by reference (the “Properties”); and WHEREAS, the Properties were acquired over approximately the last ten years by the City’s Natural Areas Department (“NAD”); and WHEREAS, each of the Properties has a Fort Collins/Loveland Water District water tap associated with it, and one of the Properties also has a South Fort Collins Sanitation District sewer tap (the “Taps”), as shown on Exhibit A; and WHEREAS, the Taps can be sold or transferred to other land owners under certain conditions, and NAD would like to sell the Taps because it does not need them for the Properties, and it is having to pay monthly fees for the Taps totaling approximately $1,425 per year; and WHEREAS, NAD has confirmed that no other City departments have a use for the Taps, so it would like to sell the Taps on the open market to the highest bidder or bidders; and WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell or otherwise dispose of any and all interests in real property owned in the name of the City provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City; and WHEREAS, Section 23-110 of the City Code defines “real property” to include not just land but also buildings, permanent structures and any and all easements, incorporeal hereditaments and every estate and right therein; and WHEREAS, City staff is recommending the Taps be sold and is requesting Council authorization to do so because the Taps are intangible rights currently annexed to particular real properties; and WHEREAS, at its regular meeting on February 13, 2019, the Land Conservation and Stewardship Board voted to recommend the City Council authorize the sale of the Taps. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That the City Council hereby finds that the sale of the Taps as provided herein is in the best interests of the City. Section 3. That the City Manager is hereby authorized to sign such documents as are necessary to convey the Taps on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City. Introduced, considered favorably on first reading, and ordered published this 5th day of March, A.D. 2019, and to be presented for final passage on the 19th day of March, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 19th day of March, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk NATURAL AREA: PROPERTY LOCATION: DISTRICT ACCOUNT NUMBER: 1. Coyote Ridge 8161 CRD 19 #3129200-01 2. Fossil Creek 2500 E. CRD 30 #25131480-02 3. Hazaleus 6132 S. Shields #3182002-01 4. Eagle View 4112 E. CRD 34 E. #1213051-01 5. Red Fox Meadows Prospect and Taft Hill #1128031-01 6. Red Fox Meadows Prospect and Taft Hill #1128041-01 7. Prairie Dog Meadows 6317 Kyle Avenue #04332900-02 (water and sewer taps) EXHIBIT A